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KonstantinChe [14]
3 years ago
12

assume that one year ago you bought 100 shares of a mutual fund for 14 per share you recieved a 0.75 per share capital gain dist

ribution during the past 12 months and the market value of the fund is now 17 calculate the percent of total return ofr you 1400 investment
Business
1 answer:
Alinara [238K]3 years ago
7 0

Answer:

26.78% ≈ 26.8%

Explanation:

Given:

Shares bought = 100

Buying price per share = $14

Total investment = $1400

Capital gain = $0.75 per share

Total capital gain = $0.75 × 100 = $75

Market value = $17

Thus,

Gain from increase in market value per share = $17 - $14 = $3

Therefore,

Total gain = $75 + $3 × 100 = $375

Total return = \frac{\textup{Total gain}}{\textup{Total investment}}\times100\%

= \frac{\textup{375}}{\textup{1400}}\times100\%

= 26.78% ≈ 26.8%

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An all-equity firm is considering the following projects:
Elza [17]

Answer:

a)

Project Y and Project Z

b)

Project X and Project Y

c)

Project X and Project Z

Explanation:

Apply the CAPM to calculate the required return for each project as followed:

Project W: 4% + 0.75 * (11%-4%) = 9.25%

Project X: 4% + 0.90 * (11%-4%) = 10.3%

Project Y: 4% + 1.15 * (11%-4%) = 12.05%

Project Z: 4% + 1.45 * (11%-4%) = 14.15%

So, for:

a)

Which projects have a higher expected return than the firms 11 percent cost of capital: Project Y 12.8% and Project Z 13.9% which are given.

b)

Project should be accepted is project that has expected returns higher than required return which is Project X and Project Y.

c)

Using the firm's overall cost of capital as a hurdle rate:

Project Z will be accepted which is incorrect because its Required returned is higher than its expected returns ( 14.15% > 13.9%)

Project X will be rejected which is incorrect because its Required returned is lower than its expected returns ( 10.3% < 10.8%).

5 0
4 years ago
Crow earned $585.15 during the week ended March 1, 20--. Prior to payday, Crow had cumulative gross earnings of $4,733.20. Round
hram777 [196]

Answer:

A. $36.28

B. $8.48

Explanation:

a. Calculation for the amount of OASDI taxes to withhold from Crow's pay

OASDI taxes is 6.2%

Hence,

OASDI taxes to withhold = 585.15*0.62

OASDI taxes to withhold = $36.28

Therefore the OASDI taxes to withhold from Crow's pay is $36.28

b. Calculation for the amount of HI taxes to withhold from Crow's pay

HI taxes is 1.45%

Hence,

HI taxes to withhold =585.15*0.0145

HI taxes to withhold=$8.48

Therefore HI taxes to withhold from Crow's pay is $8.48

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Sentence:

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